Expanding your business in the United States is the dream of many Italian women entrepreneurs, but few fully understand how strategic and complex this step is.
Opening a company in the U.S. represents an opportunity to consolidate control over your brand, access a more advantageous tax system and take advantage of the many opportunities this market can offer.
Although the process requires a thorough understanding of U.S. legal and tax regulations, approaching it with the right preparation can pave the way for important successes, both professionally and personally.
In this guide, we will explore why incorporating in the United States is a strategic choice and how to take this step with awareness.
Why open a company in the US?Perché aprire una società negli USA?
If you are considering entering the U.S. market, there are at least three main reasons why opening a company in the U.S. is an advantageous choice.
Brand control and direct access to the U.S. market
One of the main advantages of opening a company in the United States is full control over your brand: having a direct presence in the market allows you to directly manage your distribution, sales and marketing strategies without depending on importers and distributors, whose management of your brand may not fully reflect your vision and strategy.
In this way, you can ensure that your product or service is represented consistently, conforming to your standards and the needs of the U.S. market.
This freedom of action translates into a greater ability to adapt to consumer demands and respond quickly to market dynamics.
Tax advantages in the U.S.
Another reason that makes it advantageous to open a company in the U.S. concerns tax advantages: compared to Italy, the United States offers lower tax rates and, above all, more transparency.
For example, while in Italy corporate taxes are 24% (IRES) + 4% (IRAP), in the US the federal corporate rate is generally around 21%.
Companies are thus able to optimize profit margins and reinvent earnings directly in the U.S. market.
In addition, each state has its own local taxation, and some states offer particularly advantageous tax conditions to attract businesses, such as Delaware and Wyoming.
Inoltre, ogni Stato ha la propria tassazione locale, e alcuni Stati offrono condizioni fiscali particolarmente vantaggiose per attrarre le imprese, come il Delaware e il Wyoming.
Tax advantages can be key to achieving a greater return on investment.
Personal benefits of opening a company in the U.S.
In addition to tax and brand benefits, opening a company in the U.S. also offers advantages on a personal level .
If you wish to purchase real estate in the US, opening a local company helps you gain credibility and makes it easier to access financing.
In addition, opening a company in the U.S. can also be a gateway to obtaining work visas or study visas-this is particularly attractive for those who plan to move to the U.S. or have children who wish to study in the country.
In practice, opening a company in the U.S. not only allows you to enter the market, but also provides opportunities for personal and family expansion.
Types of companies in the U.S.: LLC vs. Corporation
When deciding to open a corporation in the U.S., the choice of legal type is crucial and depends on several factors related to company structure, size and objectives.
The two most common forms of companies in the USA (with foreign partners and in our case Italian) are the Limited Liability Company (LLC) and the Corporation (Inc.): each of them offers different advantages and it is essential to fully understand the differences in order to make the best choice.
Limited Liability Company (LLC): the limited liability company
The LLC (limited liability company) is one of the most popular corporate structures in the United States, mainly because of its flexibility and tax benefits. This type of company offers limited liability to members, just like a Corporation, but allows them to be taxed like a partnership or an “S” Corporation, avoiding double taxation.
In practice, an LLC allows entrepreneurs to avoid paying corporate income taxes at the federal level because profits are “passed through” to the partners, who report them personally.
This is a significant advantage over traditional corporate tax, which can be heavier in some cases.
The Limited Liability Company is particularly suitable for smaller companies or those with a small number of partners, as it offers more flexibility in internal management and profit distribution.
Corporation (Inc.): the choice for companies with employees
The Corporation, or Inc., is a more complex structure, suitable for larger firms, particularly those wishing to attract investors or issue shares.
A Corporation also offers limited liability for its shareholders, but has a more rigid structure than the LLC, requiring a board of directors, annual meetings, and the recording of official minutes.
From a tax perspective, a Corporation is subject to double taxation: first the on the Corporation itself is taxed, and then the shareholders pay taxes on the dividends received. However, Corporations enjoy some tax benefits, such as the ability to deduct certain employee benefits, which makes them an attractive choice for those with a large number of employees.
Choosing between LLC and Corporation in the US: what to consider
The choice between LLC and Corporation depends on the size of the business, capital needs and willingness to attract investors.
An LLC is ideal for small and medium-sized businesses, while a Corporation is more suitable for those who want to grow quickly, open new funding channels or expand into international markets.
If your company has employees and plans to make large investments, a Corporation might be the right way to go. Conversely, if you want a simpler structure with more control over internal management and profits, an LLC might be a more suitable choice.
How to open a corporation in the U.S.: the step-by-step process
Opening a company in the United States requires care and precision, as each state has specific rules and procedures. However, the incorporation process can be broken down into a few basic steps to ensure effective and compliant registration.
1. Choosing the state of registration in the U.S.
The first decision is about where to incorporate the company: Delaware, for example, is popular among entrepreneurs and businesswomen because of its business-friendly laws, which include favorable taxation and simplified procedures. However, if you plan to operate in a particular state, it may be convenient to register directly there.
2. Legal registration in the U.S.
Once the state is chosen, the next step is to file incorporation papers with the local Secretary of State. This process includes:
- Filling out the Articles of Organization (for LLC) or Articles of Incorporation (for Corporation).
- Appointment of Registered Agent, the individual or company responsible for receiving legal notices on behalf of the corporation.
- Payment of state registration fees, which vary from state to state.
3. Obtaining the EIN (Employer Identification Number).
After registration, an Employer Identification Number (EIN) must be obtained from the Internal Revenue Service (IRS): this is the essential identification number for opening corporate bank accounts, hiring employees, and handling tax obligations.
4. Opening a corporate bank account in the United States.
A bank account in the United States is essential for managing the company’s cash flows and facilitating local and international payments. To open an account, corporate documents and EIN will be required.
5. Compliance with tax and regulatory obligations in the U.S.
A company in the U.S. must comply with both federal and state and local taxation. It is critical to understand the applicable rates and prepare for any annual reports or maintenance fees.
Tax and operational benefits of opening a business in the U.S.
In the United States, the tax system is structured to incentivize business growth; corporate tax rates can be significantly lower than in Italy. For example:
- The federal corporate tax rate is currently set at 21%, to which are added any state taxes, which vary between 0% and 12%, depending on the state.
- For partners or shareholders, taxation on dividends can generally be lower than in Italy, making the system particularly advantageous.
This system allows entrepreneurs to optimize the distribution of profits while maintaining competitive margins and reinvesting directly in the business.
Another advantage to opening a company in the U.S. is the ability to have direct control over the distribution and sale of one’s brand. Operating through a U.S. company allows you to:
- Reduce intermediaries: by directly managing operations in the local market, you ensure greater consistency with the desired positioning of the brand.
- Speed up logistics: using local warehouses to quickly redistribute products
- Optimize revenues: keeping earnings directly in the US and benefiting from more favorable local tax management.
Opening a company in the U.S.: challenges and considerations
We have seen that the difference between the Italian and American legal and tax systems can be complex: each state has its own laws, tax regulations and business practices, which require a thorough understanding to avoid legal and tax issues.
For this reason, it is essential to partner with local professionals who can assist entrepreneurs and businesswomen throughout the process of company formation and management.
Our advice helps you understand the main mechanisms and strategic choices to be made, but it is important to remember that for the specific legal part of company filing, you need to rely on a U.S. attorney, who has the expertise to handle the bureaucratic aspects and ensure that your company is fully compliant with local laws.
You also need to consider the annual costs of maintaining a company in the United States: in addition to the initial registration, there are annual fees, renewal fees, and costs for the services of the registered agent, who represents the company to receive official communications.
All of these costs vary depending on the state in which the company is registered; therefore, it is important to factor them into your long-term financial planning to avoid surprises.
Want to open your company in the United States? Contact us for a personalized consultation and find out how to make your project a reality in the U.S. market!
